JinkoSolar Extends Share Repurchase Program

Rhea-AI Summary

JinkoSolar Holding Co., Ltd. (NYSE: JKS) has extended its share repurchase program for an additional 18-month period through June 30, 2025. The company is authorized to repurchase up to US$200 million of its ordinary shares represented by American depositary shares (ADSs). As of the date of the press release, approximately US$9.1 million of the ADSs had been repurchased, leaving approximately US$190.9 million remaining. The company plans to use its existing funds and external financing to fund repurchases made under the Share Repurchase Program.

Insights

Financial Analyst

The extension of JinkoSolar's share repurchase program represents a strategic financial decision that can influence investor sentiment and the company's capital structure. Share repurchase programs are typically interpreted as a sign of confidence by a company's management in its current valuation and future prospects. In this case, the repurchase of up to US$200 million worth of shares signals a substantial investment back into the company.

From a financial standpoint, reducing the number of shares outstanding can increase earnings per share (EPS), potentially making the stock more attractive to investors. It can also provide support to the share price by creating additional demand in the market. The long-term benefits may include enhanced shareholder value and a more optimized equity structure. However, the use of existing funds and external financing to support the buyback could impact the company's cash reserves or increase its debt profile, which stakeholders should monitor closely.

Investors should consider the context of the solar industry's growth trajectory and JinkoSolar's technological advancements, such as its N-type TOPCon technology, which may contribute to its competitive edge. The company's integrated capacity structure and global operations could facilitate sustained growth, aligning with the bullish sentiment expressed by the Chairman and CEO.

Industry Analyst

Within the renewable energy sector, solar technology companies like JinkoSolar are experiencing a surge in demand due to global energy transition initiatives. The company's focus on N-type TOPCon technology, a high-efficiency solar cell technology, is particularly relevant as the industry prioritizes advancements in solar panel performance and cost-effectiveness.

Investors should be aware of the competitive landscape and regulatory changes that could affect JinkoSolar's market position. While the share repurchase program may reflect internal confidence, external factors such as tariff policies, subsidies for renewable energy and competition from other solar manufacturers are crucial considerations for long-term strategic positioning.

Understanding the company's operational footprint is vital, as it may provide resilience against supply chain disruptions and enable rapid scaling to meet increasing demand. JinkoSolar's extensive global operation network could be a significant asset in this context.

Corporate Governance Expert

Corporate governance practices, including share repurchase programs, are closely scrutinized by investors for indications of a company's governance quality and management's alignment with shareholder interests. JinkoSolar's decision to extend its share repurchase program is a governance action that can impact perceptions of the company's leadership and strategic direction.

While share buybacks can be seen as a positive move, it is essential for investors to evaluate the transparency and rationale behind the timing and execution of the program. The adherence to Rule 10b-18 and Rule 10b5-1 of the Exchange Act, as well as the company's insider trading policy, will be key in ensuring that the repurchases are conducted fairly and without manipulative intent.

Stakeholders should also consider the potential opportunity costs of the repurchase program, such as foregone investment opportunities in research and development or capital expenditures that could drive future growth. The balance between returning value to shareholders and investing in the company's long-term growth is a critical aspect of sound corporate governance.

SHANGRAO, China, Dec. 20, 2023 /PRNewswire/ -- JinkoSolar Holding Co., Ltd. ("JinkoSolar" or the "Company") (NYSE: JKS), one of the largest and most innovative solar module manufacturers in the world, today announced that its board of directors ("Board") has authorized the Company to extend its existing share repurchase program launched in July 2022 for an additional 18-month period through June 30, 2025. Under the existing share repurchase program, the Company is authorized to repurchase up to US$200 million of its ordinary shares represented by American depositary shares ("ADSs"). As of the date of this press release, the Company had repurchased approximately US$9.1 million of the ADSs authorized under the existing share repurchase program, and the remaining approximately US$190.9 million of the ADSs had not been utilized. Under the extended share repurchase program, the Company may repurchase up to approximately US$190.9 million of its ordinary shares represented by the ADSs through June 30, 2025.  

The Company's proposed repurchases may be made from time to time on the open market at prevailing market prices in open-market transactions, privately negotiated transactions or block trades, and/or through other legally permissible means, depending on market conditions and in accordance with the applicable rules and regulations. The timing and conditions of the share repurchases will be subject to various factors including the requirements under Rule 10b-18 and Rule 10b5-1 of the Exchange Act, as well as the Company's insider trading policy. The Company plans to use its existing funds and external financing to fund repurchases made under the Share Repurchase Program.

Mr. Xiande Li, JinkoSolar's Chairman of the Board and Chief Executive Officer, commented, "This extended share repurchase program further reflects our strong confidence in our future prospects. The competitive advantage of our N-type TOPCon technology, extensive global operation network, and advanced integrated capacity structure have ideally positioned us to benefit from the growth opportunities this sector continues to generate. We remain fully committed to creating sustainable value for our shareholders."

About JinkoSolar Holding Co., Ltd.

JinkoSolar (NYSE: JKS) is one of the largest and most innovative solar module manufacturers in the world. JinkoSolar distributes its solar products and sells its solutions and services to a diversified international utility, commercial and residential customer base in China, the United States, Japan, Germany, the United Kingdom, Chile, South Africa, India, Mexico, Brazil, the United Arab Emirates, Italy, Spain, France, Belgium, Netherlands, Poland, Austria, Switzerland, Greece and other countries and regions.

JinkoSolar had 14 productions facilities globally, 24 overseas subsidiaries in Japan, South Korea, Vietnam, India, Turkey, Germany, Italy, Switzerland, the United States, Mexico, Brazil, Chile, Australia, Canada, Malaysia, the United Arab Emirates, Denmark, Indonesia, Nigeria and Saudi Arabia, and global sales teams in China, the United States, Canada, Brazil, Chile, Mexico, Italy, Germany, Turkey, Spain, Japan, the United Arab Emirates, Netherlands, Vietnam and India, as of September 30, 2023.

To find out more, please see: www.jinkosolar.com

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the quotations from management in this press release and the Company's operations and business outlook, contain forward-looking statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Further information regarding these and other risks is included in JinkoSolar's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. Except as required by law, the Company does not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

For investor and media inquiries, please contact:

In China:

Ms. Stella Wang
JinkoSolar Holding Co., Ltd.
Tel: +86 21-5180-8777 ext.7806
Email: ir@jinkosolar.com

Mr. Rene Vanguestaine
Christensen
Tel: +86 178 1749 0483
Email: rene.vanguestaine@christensencomms.com  

In the U.S.:

Ms. Linda Bergkamp
Christensen, Scottsdale, Arizona
Tel: +1-480-614-3004
Email: linda.bergkamp@christensencomms.com

View original content:https://www.prnewswire.com/news-releases/jinkosolar-extends-share-repurchase-program-302019885.html

SOURCE JinkoSolar Holding Co., Ltd.

FAQ

What is the company name and ticker symbol for JinkoSolar?

The company name is JinkoSolar Holding Co., Ltd. and its ticker symbol is JKS.

What is the extended share repurchase program announced by JinkoSolar?

JinkoSolar has extended its existing share repurchase program for an additional 18-month period through June 30, 2025, authorizing the repurchase of up to US$200 million of its ordinary shares represented by American depositary shares (ADSs).

How much of the authorized ADSs has JinkoSolar repurchased under the existing share repurchase program?

As of the date of the press release, JinkoSolar had repurchased approximately US$9.1 million of the ADSs authorized under the existing share repurchase program, leaving approximately US$190.9 million of the ADSs remaining.

How does JinkoSolar plan to fund the repurchases made under the Share Repurchase Program?

JinkoSolar plans to use its existing funds and external financing to fund repurchases made under the Share Repurchase Program.

Who commented on the extended share repurchase program at JinkoSolar?

Mr. Xiande Li, JinkoSolar's Chairman of the Board and Chief Executive Officer, commented on the extended share repurchase program, expressing strong confidence in the company's future prospects and commitment to creating sustainable value for shareholders.